FILE PICTURE: Tesla China-made Model 3 vehicles are seen during a delivery event at its factory in Shanghai, China Jan. 7, 2020. REUTERS/Aly Song/File Photo
Tesla Inc. plans to suspend production at its Shanghai plant for at least one day as the local government intensifies Covid restrictions after a surge in cases in the city, people familiar with the matter said.
Production will be halted on Monday, the people said, asking not to be identified because they’re not authorized to speak publicly. Tesla hasn’t yet informed employees whether it will extend the suspension beyond Monday, they said. Tesla didn’t immediately respond to requests for comment.
Shanghai will lock down half of the city in turns to conduct a mass testing blitz to combat a Covid-19 outbreak that’s turned it into China’s biggest virus hotspot. Areas in the east of the Huangpu River, where the Tesla plant is located, will be locked down on Monday for four days. Tesla has not yet told its employees how long the production shutdown would last, though many of its workers would face lockdowns where they live.
The first gigafactory outside Tesla’s home country produced half of the electric carmaker’s vehicles last year and had to suspend production for two days earlier this month. The company said at the time that it was making its "best effort” to ensure production could continue at the plant, while "actively cooperating with the government’s order for Covid tests and relevant pandemic prevention measures.”
